The Strength Of Your Business Model

The Strength Of Your Business Model

by William Lulow

Business models are important whenever you are setting up a business. It represents how you will make a profit from your business. In photography, they are even more important than in other businesses because most photographers don’t even consider photography a business. Many photographers go into the field because they fall in love with making images. That was the case with my love affair with photography. Not only that, but when I began my business, I was living and working in my studio. So, the separation between home and work didn’t exist for me from the beginning. It wasn’t until eight years after I started the business that I finally moved to a large studio in Manhattan’s “Photo District” on West 22nd Street. I operated my business from that studio for ten years and since my location work seemed to take over and become the major part of my income, I gave up the studio and began working from my home again.

There are some photo studios whose business models use a minimal shooting fee to entice clients to visit their premises. Then they charge them exorbitant fees for prints to make up the difference. I decided, almost when I started in business, that I was a commercial photographer and not just a portrait studio. My fees include the cost of prints and certain other expenses. Back in the days of film, I also charged extra for film, processing, delivery, stylists, Polaroids, transportation, assistants, etc. Everything that I could think of that went into completing the job was built into the fee or added on to the invoice. That was always my business model for any job that I did. My studio was a commercial one rather than one built on individual customers. The problem is that I still do many jobs for private individuals rather than companies. But my business model has not changed. I still charge commercial fees to cover any expenses including prints, if anyone needs them.

Today, there is no film, processing or Polaroids for tests. And, for most commercial jobs there is no need for prints. Whenever I do a portrait in the studio, my fee covers digital post-processing and one or two 8×10 prints. I always like to be able to hand my clients a tangible representation of what we did, rather than just the digital files. So I make sure that whatever fees I charge cover the cost of ink and paper as well as the computer time to make them. These days, prints are cheap. You can get a 16×20-inch print made by one of the on-line printing companies for around $20. Back in the days of film, an 8×10 print could cost $35 or $40. In the digital world, these items are much cheaper than they used to be.

My business model still includes charging fees for the following (all included in any commercial job):

1. Shooting time
2. Studio rental
3. Stylists
4. Assistants
5. Extra Equipment rental
6. Transportation
7. Delivery & postage
8. Computer post processing
9. Retouching (separate from processing)
10. Consultation fees

Basically, photographers get paid by the job based on how much time it takes to complete the desired shoot, what’s involved, logistically, in getting the job done and any extra costs that need to be paid to ensure that the job goes smoothly and the client receives valuable images that he/she can use for the purposes intended.

On a recent job, I provided three 8×10 prints of the following images included in the fee:

The fee for the job covered the cost of the prints, which I make myself on my studio printer. The client loved the prints and was enthusiastic about the whole job.

There are many different business models for every type of business. As a commercial photographer who has owned and operated a studio as well as a business from his home/studio, I have always followed the idea that if you become “in demand,” your fees will more than cover whatever your expenses are, plus net you a decent profit on every job. You should probably have an accounting program that you can consult to make sure your profit margins are high enough to allow not just the running of your studio as a business, but also provide you with an income you can actually live on. That’s the key to any successful business model. It needs to generate enough income to cover all expenses and net the owner a decent salary as well. Some accountants say that small business owners should pay themselves a salary first, before paying expenses. It doesn’t always work out that way, but it’s a good thing to keep in mind.

Whatever business model you choose, just remember that if you plan to earn your living from making pictures and you hope to be successful at it, make sure your you can cover all your expenses with the fees you earn, plus, pay yourself a salary.